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17/01/20
00:54
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Originally posted by Blue fox:
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The financier hasn’t released the loan hence the capital raise the fourth in six months this demonstrates no plan and disorganisation the directors are on massive bonuses and options so need to be seen in support they didn’t put in that much compared to the bonuses with out detail on the take or pay its no risk to a trader if they don’t supply nothing to take nothing to pay if the TAP were binding and strong then they would have obtained finance on a lot more attractive terms 9.5 % LOM royalty 10 million options isn’t a good deal as for having instoes investing 1/3 lost money last year 1/3 treaded water and the last third failed to beat the ASX 300 so do you want to follow them ? the project has some positives grade is reasonable ( even though the same people said grade doesn’t matter when they had low grade at LWs) location isn’t as good as others but can be dealt with infrastructure at Wiluna is non existent the Capex and opex numbers supplied are plucked from the air and Taylor’d to look better then the competitors the time line is impossible to achieve IMO the work has not been done to produce a reliable reserve this is a general mistake made by juniors rushing to production the demonstration pond has not had enough time to demonstrate anything and now it is a commercial pond otherwise the project could be ok just needs enviromental aproval and another $15000000
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"with out detail on the take or pay its no risk to a trader if they don’t supply. nothing to take nothing to pay" This isn't true, it deters the trader from entering into other TorP agreements as they would end up with either too much product or a penalty if both/all producers came good. Perhaps this is a risk they take to avoid a shortfall in supply?